Saugatuck teachers first in area to drop MESSA insurance

SAUGATUCK -- Saugatuck's teachers are the area's first to drop MESSA health insurance, a move that will save the school district nearly $180,000 a year, officials said.

"We're the first district in the area to drop the MESSA insurance to my knowledge," school board President Mike Van Loon said tonight.

Under the new two-year contract, approved tonight, the Saugatuck Education Association will switch coverage from the Michigan Education Association-based insurance to Priority Health at a savings of $3,800 per teacher a year for Saugatuck Public Schools.

The new agreement also provides the district's 53 teachers with a 2.75 percent salary increase in the first year and a 2.25 percent increase the second year.

The contract is retroactive to July 1, and was approved earlier today by the SEA.

"We were able to effectively maintain the same level of (health) benefits, but through the competitive bid process lower our costs," said Superintendent Rolfe Timmerman, following approval by the board.

The Priority Health plan will go into effect Jan. 1. The district is expected to save $76,000 for the first half-year in the new system and then $179,000 in the second full year.

Timmerman said the money saved would go into the district's general fund and in part be used to cover the new salary increases in the contract, with money left over.

"The first half-year will be a wash, and then the district will begin saving significant money in the second year," said Timmerman.

SEA President Betsy Webbert said the district's teachers are continuing to work with the administration in helping maintain quality education in Saugatuck schools.

"We have always tried to be proactive, make informed decisions and look to what is best for the future of our school," said Webbert in a statement.

District Business Manager Elizabeth Broderick said the bid process for health insurance coverage came down to Priority Health and MESSA after a review of proposals from 70 insurance companies.

In July, the Holland Education Support Personnel, which represents support staff such as secretaries and transportation employees, dropped MESSA insurance.